If the Money Supply Is Increasing at a Constant 8

question 139

Multiple Choice

If the money supply is increasing at a constant 8 percent,velocity is constant,real GDP is increasing at 5 percent,and the inflation rate is 3 percent,which of the following is true?

• A)The growth rate of GDP is too low to be maintained.
• B)The inflation rate is too low to be maintained.
• C)Velocity is too low to be maintained.
• D)The money supply growth rate is too low to be maintained.
• E)This situation can continue indefinitely.

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Definitions:

Completion Rates

The percentage of participants who finish a given course, program, or study, often used as a metric of success or effectiveness.

Preferred Activity

An activity that an individual chooses or prefers over other options, often used in reinforcement learning and behavior modification strategies.

Response Deprivation Theory

A theory suggesting that a behavior can become reinforcing when access to that behavior is restricted below its baseline level of occurrence.

Baseline Occurrence

The rate at which a behavior occurs before any intervention or conditioning is applied.